Q2 2024 Life Time Group Holdings Inc Earnings Call Transcript
Key Points
- Total revenue increased by 19% to $668 million compared to the prior year quarter.
- Net income for the quarter was $53 million, up from $17 million in the second quarter of 2023.
- Adjusted EBITDA for the second quarter was $173.5 million, an increase of 28% versus the second quarter of 2023.
- Net debt to adjusted EBITDA leverage reduced to 3.0 times from 4.3 times in the prior year period.
- Free cash flow was $175 million in the second quarter, significantly up from $21 million in the prior year period.
- Some clubs are still underperforming and have significant room for improvement.
- The company is cautious about guiding to higher EBITDA margins, aiming to maintain a 23.5% to 24.5% range.
- Initial investments in new initiatives and technology, including AI, may impact short-term profitability.
- The sale-leaseback environment is currently challenging, with expectations for better rates in the future.
- Despite strong performance, the company remains cautious about macroeconomic headwinds affecting consumer behavior.
Good morning, and welcome to the Life Time Group Holdings, Inc. Q2 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I'd now like to turn the conference to Ken Cooper, Investor Relations. Please go ahead.
Good morning, and thank you for joining us for the second quarter 2024 Life Time Group Holdings earnings conference call. With me today are Bahram Akradi, Founder, Chairman, and CEO; and Erik Weaver, Executive Vice President, CFO.
During this call, the company will make forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from those forward-looking statements made today.
There is a comprehensive discussion of Risk Factors in the company's SEC filings, which you are encouraged to review. The company will discuss certain non-GAAP financial measures, including adjusted net income, adjusted EBITDA, adjusted diluted EPS, net debt to adjusted EBITDA, or what we
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